Thursday, March 1, 2018

MBS Day Ahead: 2nd Day of Powell Testimony. Any More Landmines?

Posted To: MBS Commentary

This is currently the best week of the year for bond markets. The same was true of last week in the sense that it was the first time in 2018 that yields ended lower vs the close of the previous week. While that would be the case yet again if the week were to end today, a lot can happen by tomorrow afternoon. As we've discussed throughout the week, the first 2 days of March are the most important when it comes to confirming the recent stability. In the following chart, that stability can be seen in 10yr yields moving to test the middle bollinger band (the yellow lines). As of this morning, they've also tested the horizontal pivot point at 2.85%, but may be shying away from those gains presently. Short-term momentum metrics are still looking good, and longer-term momentum metrics are...(read more)
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from Mortgage News Daily http://ift.tt/2FHIqeI

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